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1% tax on foreign money launderers buying UK property

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https://www.independent.co.uk/news/uk/politics/conservative-conference-stamp-duty-foreign-uk-home-buyers-theresa-may-housing-crisis-a8561136.html

If this is correct and the Tory party are looking to implement a 1% tax (possibly rising in the future) on foreigners looking to hide their money in UK property, it does seem the Tory party under May/Hammonds leadership will do sweet FA to fix the housing bubble.

 

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2 minutes ago, Banned said:

https://www.independent.co.uk/news/uk/politics/conservative-conference-stamp-duty-foreign-uk-home-buyers-theresa-may-housing-crisis-a8561136.html

If this is correct and the Tory party are looking to implement a 1% tax (possibly rising in the future) on foreigners looking to hide their money in UK property, it does seem the Tory party under May/Hammonds leadership will do sweet FA to fix the housing bubble.

 

So basically, bring your dirty money to the UK to be laundered and as long as we get our 1% we will turn a blind eye!

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Just now, MrXxx said:

So basically, bring your dirty money to the UK to be laundered and as long as we get our 1% we will turn a blind eye!

Yes plus the Tory party are needing a headline and someone to blame the property bubble on at this years conference and this is the best they can come up with.

Seeing what Hammond is like he'll probably implement it after the 2022 election.

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19 minutes ago, MrXxx said:

So basically, bring your dirty money to the UK to be laundered and as long as we get our 1% we will turn a blind eye!

Yes. Still it's a lot better than today's bonanza. Nevertheless, it will be compensated by the fall in Sterling 

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25 minutes ago, One percent said:

That’s only as add to stamp duty. I thought it was going to say a one percent tax each year, which would be far more sensible 

The UK's property taxes are woefully low -- which is partly why the UK is so attractive as a place to park money.  In addition, there is the problem that people resident overseas (including UK citizens living abroad) are tax-opaque.

I'd suggest that all foreign owned assets are treated as income generating assets for tax purposes -- so, whether the place is rented out or not, the owners should be taxed at 40% of the asset's rental value.

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34 minutes ago, MrXxx said:

So basically, bring your dirty money to the UK to be laundered and as long as we get our 1% we will turn a blind eye! 

Its currently 0%, so 1% (potentially rising to 3) is better than nothing.

The Government needs more cash and hitting foreigners who dont vote isnt a bad option.

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4 minutes ago, dgul said:

The UK's property taxes are woefully low -- which is partly why the UK is so attractive as a place to park money.  In addition, there is the problem that people resident overseas (including UK citizens living abroad) are tax-opaque.

I'd suggest that all foreign owned assets are treated as income generating assets for tax purposes -- so, whether the place is rented out or not, the owners should be taxed at 40% of the asset's rental value.

When I lived in Singapore any foreigners buying property would have to pay a 20% extra. Made perfect sense. 

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29 minutes ago, stuckmojo said:

When I lived in Singapore any foreigners buying property would have to pay a 20% extra. Made perfect sense. 

Brits cannot own land their, as we cant in most the rest of planet earth. Certainly cant in Russia or China.

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31 minutes ago, Majorpain said:

Its currently 0%, so 1% (potentially rising to 3) is better than nothing.

The Government needs more cash and hitting foreigners who dont vote isnt a bad option.

Agreed. But other countries NZ for example have played tougher. 1% is pitifully low. It really should be a headline figure say 15%. 

Taxing them less than the poor fucker s who actually live in the country isnt on.

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I saw this coming a while ago - sold an interest I had in a UK property before the previous tax changes (that meant foriegners had to start paying CGT, incredibly that was not the case for years!). 

Corbyns proposals for taxes on holiday homes, plus this Tory move, means that finally the Uk will become less attractive as a wealth storage vehicle.  Completely the wrong time in the economic cycle to do it, though

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18 minutes ago, Banned said:

A nation should want cheap homes at all points of the economic cycle so then people have more to invest in creating businesses and spend in the high street. SHould have happened a decade or more ago though.

Can you come and have a chat with my wife. 

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6 hours ago, Majorpain said:

Its currently 0%, so 1% (potentially rising to 3) is better than nothing.

The Government needs more cash and hitting foreigners who dont vote isnt a bad option.

Better than nothing?...maybe better to restrict property ownership to nationals of the country as many others do....and as for needing the cash, a good start would be insisting that as part of the visa process you need to show proof of medical insurance rather than getting the treatment and then leaving before settling your bill!

Edited by MrXxx
typo

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I wonder whether the new tax would apply to this?  He is not buying a new property but building a barrets estate on land he already owns

https://www.dailymail.co.uk/news/article-6223983/Billionaire-Dubai-ruler-bid-build-new-mansion-Scottish-estate.html

why are people who have no stake in the local area allowed to change it out of all recognition?

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10 hours ago, One percent said:

I wonder whether the new tax would apply to this?  He is not buying a new property but building a barrets estate on land he already owns

 

Everyone should be able to build a house on land they own. Its called a free market with small non intefering govt.

Fuck the green belt.

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13 hours ago, One percent said:

I wonder whether the new tax would apply to this?  He is not buying a new property but building a barrets estate on land he already owns

https://www.dailymail.co.uk/news/article-6223983/Billionaire-Dubai-ruler-bid-build-new-mansion-Scottish-estate.html

why are people who have no stake in the local area allowed to change it out of all recognition?

Because politicians bend the rules for political gain...another fine example in Scotland was Trumps golf course that was allowed to destroy  a SSSI (protected nature area), allowed in the public interest on the promise of increased local jobs...that like most of his utterances, never appeared.

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Posted (edited)
14 hours ago, One percent said:

I wonder whether the new tax would apply to this?  He is not buying a new property but building a barrets estate on land he already owns

https://www.dailymail.co.uk/news/article-6223983/Billionaire-Dubai-ruler-bid-build-new-mansion-Scottish-estate.html

why are people who have no stake in the local area allowed to change it out of all recognition?

I don't mind this so much.  Doesn't look like he's got any near-neighbours, and the entire build-cost will presumably find its way into the pockets of local builders and UK based materials suppliers.  And the housing stock goes up by 9 bedrooms.  I'll leave any architectural concerns to the planners, as you'd need more than a drone photo to decide on that. 

In principle, I think we should clamp down on foreign money buying and selling the existing housing stock - but welcome it when it wants to add to what we have.

Disclosure:  Am a builder.

Edited by Bricks & Mortar
adding disclosure.

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